(Photo: Wheat milling chart from RIA Consultores shows the last May peak)
Buenos Aires, July 4th. According to the statistics from the Agro-Industry secretariat, during May the wheat milling industry processed 552,172 tons of wheat, the largest amount since August 2012 and 10% above May 2018 milling. This is a good news, but it does not mean that millers are flourishing, but that the fight against tax evasion is showing positive results.
Officially, the wheat milling industry process around 5.6 MMT of grain per year, but it’s supposed that another one million metric tons of wheat is milled and commercialized in the black market, eluding the tax collecting.
Last year, the Agriculture Commercial Control Directorate decide, finally, to implement the installation of electronic devices to control the wheat milling. The deadline was fixed April 15th, and then the officials from the Directorate started a rigorous control over the mills. “I think that just afraid to be closed was sufficient to formalize the milling”, a source in the industry told to eFarmNewsAr.com.
It’s thought that the wheat milling could “grow” 500 to 700K tons this year thanks to the fight against the black market. In fact, there is a chain of tax evasion along the wheat, flour and bread commerce. The miller who buy wheat “in black” needs a farmer ready to do it, and it’s too much probably that this flour is bought “in black” by bakeries that will sell the bread without declaring it to the tax collect organism.